Duc Long Gia Lai Joint Stock Company (Duc Long Gia Lai - DLG) has just announced unusual information about the company receiving a decision not to open bankruptcy proceedings from the Gia Lai Provincial People's Court. Accordingly, bankruptcy proceedings against Duc Long Gia Lai Group Joint Stock Company are not opened and Lialama 45.3 Joint Stock Company is required to pay bankruptcy fees according to the provisions of law.

The Panel of Judges believes that after the High People's Court in Da Nang annulled the decision to open bankruptcy proceedings No. 1 (October 2023) of the Gia Lai Provincial People's Court, Duc Long Gia Lai Group continued to transfer debt to Lilama 45.3 Joint Stock Company for an additional 2 billion VND. Of which, the most recent was on June 27, 2024, transferring 350 million VND. In total, to date, Duc Long Gia Lai has paid Lilama 45.3 Joint Stock Company 6 billion VND, still owing 11.4 billion VND and committed to repaying the debt according to the schedule.

Previously, Mr. Bui Phap, Chairman of the Board of Directors of Duc Long Gia Lai, countersued Lialama 45.3 after being asked to open bankruptcy proceedings for the second time. The company said it was determining the specific value of damages to send to the court during the mediation session and presenting evidence.

According to Mr. Bui Phap, his company is profitable and has deposited more than 200 billion VND in the bank. The reason for not paying off the debt to Lilama 45.3 Joint Stock Company is because the company has a specific financial plan; the money is used to handle the pre-planned issues such as restructuring the company, paying taxes, paying customers, etc.

Mr. Bui Phap committed to a debt repayment schedule of 1 billion VND/quarter until the end of 2026, when all principal and interest will be paid to Lilama 45.3 Joint Stock Company.

Closing the morning trading session on August 7, DLG shares continued to increase to the ceiling price of 1,850 VND/share.

In the first 6 months of 2024, Duc Long Gia Lai Group's business activities have returned to profit after a period of losses. Thus, Duc Long Gia Lai is not insolvent. Because, although Duc Long Gia Lai has debts due for payment, it still fulfills its payment obligations within 3 months to Lilama 45.3 Joint Stock Company. Therefore, the Panel of Judges does not accept Lilama 45.3 Joint Stock Company's request to open bankruptcy proceedings against Duc Long Gia Lai.